In its first quarter earnings report, Peabody Energy said its revenues in Australia climbed 48% on higher realized pricing for both metallurgical and thermal coal and an 18% increase in sales volumes. Australia shipments totaled 6.6 million tons, including 2.9 million tons of metallurgical coal and 2.6 million tons of seaborne thermal coal.
U.S. revenues rose 5%, driven by higher realized prices in both the Midwestern and Western regions. While the company did not report specific tonnage, it mines about 200 million tons per year in the U.S.
“Near-term markets reflect the strength of Asia re-emerging as the leader of global economic growth and increased coal consumption. China’s steel production rebounded in March, China’s coal imports are running at a record pace, significant new global generation is coming on line, and we look for a 10% increase in seaborne coal demand in 2012,” said Greg Boyce, chairman and CEO, Peabody Energy. “Lower U.S. coal-fired generation related to mild weather and coal-to-gas switching has reduced U.S. coal demand. During March, industry shipment reductions accelerated after a number of industry production curtailments were announced. Additional reductions are likely.”
Peabody is negotiating with select customers regarding reduced 2012 shipments and is lowering planned U.S. production.
